Alibaba's Internet technology, mobile payment, big data, cloud computing and other expertise will be integrated with the company's medical institutions and research centers, according to Xi'an International Medical Investment, which is listed on the Shenzhen Stock Exchange.
The cooperation includes building an Internet-powered hospital and an artificial intelligence medical innovation lab.
The share price of Xi'an International Medical Investment rose by 10.02 percent Tuesday after it broke the news Monday evening.
Alibaba has been stepping up investment in the medical and healthcare sector in recent years, inking partnerships with hospitals in cities like Shanghai, Hangzhou and Wuhan.
China will greenlight medical institutions to conduct Internet medical services as part of a broader push to promote Internet Plus healthcare, the State Council said last week.